Pallet maker retains Fonterra contract
Timpack, one of New Zealand's largest wooden pallet and bin manufacturers, has been rewarded an exclusive contract to supply Fonterra.
Fonterra farmers are cutting costs on farm and expect similar discipline from their co-operative.
Fonterra Co-operative Council chair John Stevenson says farmers are feeling a real squeeze with increased input costs and decreased returns.
He points out that, at the current forecast milk price range, many stand to make losses in the current financial year.
"Farmers tell me that they are being ruthless as they look at what is essential expenditure within their own businesses, and what is not," Stevenson told Dairy News.
"They have sent a clear message to council, which has been passed on to the Fonterra board chair, that they expect similar discipline within their co-operative when it comes to managing costs."
With Fonterra slashing its forecast range midpoint by $1 to $7/kgMS, many farmers are bracing for a loss this season.
According to Stevenson, depending on debt levels and internal cost structures, $7/kgMS is widely accepted as being below the cost of production. He believes farmers will likely be working closely with their banks as they look to fund current cashflow requirements.
One silver lining will be the upcoming $800 million capital return to shareholders this month.
Fonterra has also signalled a strong dividend - a result of lower milk price lowering the cost of production for value added products.
Stevenson ays Fonterra shareholders will be looking forward to the upcoming capital return and the prospect of a strong dividend as they consider how their businesses are funded at the current mid-point of the forecast milk price range.
The 2025 South Island Agricultural Field Days (SIAFD) chairman, Rangiora farmer Andrew Stewart, is predicting a successful event on the back of good news coming out of the farming sector and with it a greater level of optimism among farmers.
WorkSafe New Zealand is calling on farmers to consider how vehicles move inside their barns and sheds, following a sentencing for a death at one of South Canterbury’s biggest agribusinesses.
Now is not the time to stop incorporating plantain into dairy pasture systems to reduce nitrogen (N) loss, says Agricom Australasia brand manager Mark Brown.
Building on the success of last year's events, the opportunity to attend People Expos is back for 2025, offering farmers the chance to be inspired and gain more tips and insights for their toolkits to support their people on farm.
Ballance Agri-Nutrients fertiliser SustaiN – which contains a urease inhibitor that reduces the amount of ammonia released to the air – has now been registered by the Ministry of Primary Industries (MPI). It is the first fertiliser in New Zealand to achieve this status.
Precision application of nitrogen can improve yields, but the costs of testing currently outweigh improved returns, according to new research from Plant and Food Research, MPI and Ravensdown.
OPINION: Donald Trump's focus on Canada is causing concern for the country’s dairy farmers.
OPINION: The fact that plant-based dairy is struggling to gain a market foothold isn’t deterring new entrants.